"The campaign is going to shift gears. It's going to accelerate. It's going to get much bigger," Paul told The Associated Press in an interview before a rally where he was making the announcement. "To me, it's a technical change."

Paul formally announced the move — his new "Campaign for Liberty" — in a speech to supporters attending the Texas Republican Party state convention. He said he expected many at his Thursday night rally and other supporters from around the nation to attend an alternative mini-convention he will host Sept. 2 in Minnesota to coincide with the Republican National Convention in St. Paul.

"Freedom is very popular. Not only is freedom popular, freedom works," Paul told supporters.

One of Ron Paul's leading objectives is to legalize online poker and other Internet gambling activities. 

He was also among the dozen plus Republicans who refused to endorsed Senator John McCain for President.

The announcement is a formality. The 72-year-old congressman won few delegates during the Republican primaries, but he raised large amounts of money online and developed a huge grass-roots following.

Jesse Benton, Paul's campaign spokesman, said Paul is beginning a "Campaign for Liberty."

The presidential campaign still has about $4.7 million in the bank, which can now be used for the new effort, Benton said, describing it as a "permanent campaign."

"We're going to work with the grass roots," Benton said. "People are really eager to continue and grow these efforts."